Japan Real Wages Down 0.5 Pct in FY 2025

Tokyo, May 22 (Jiji Press)–Japan’s inflation-adjusted real wages fell 0.5 pct in fiscal 2025 from the previous year, down for the fourth straight year, the labor ministry said Friday. The pace of decline was unchanged from the previous year. The country’s wage growth failed to outpace inflation despite substantial pay increases achieved in last year’s “shunto” spring wage negotiations in the country. In fiscal 2025, which ended in March, nominal monthly wages per worker, including base salary and overtime, rose 2.5 pct to 357,979 yen on average. Regular pay, mainly comprising base salary, increased 2.4 pct to 269,631 yen. The consumer price index, excluding imputed rent, which is used to calculate the real wage index, climbed 3.0 pct, against a 3.5 pct rise in fiscal 2024. Real wages in January-March this year rose 1.3 pct from a year before as the pace of inflation slowed due to the government’s electricity and gas subsidies. However, it is uncertain whether wages will continue to grow amid concerns over renewed inflation, reflecting uncertainty over the situation in the Middle East. A real wage index calculated for international comparison using the overall CPI, which includes imputed rent, slipped 0.1 pct in fiscal 2025 from the previous year. END [Copyright The Jiji Press, Ltd.]